2.3.3 Market Sellers
The following business rules apply to Market Sellers:
•
Self-scheduled generation shall submit an hourly MW schedule.
•
Generators that are Capacity Resources shall submit offers into the Day-ahead Market,
even if they are unavailable due to forced, planned, or maintenance outages.
•
Generators that are Capacity Resources and are self-scheduling shall submit offer data
in the event that they are called upon during emergency procedures. Such offers shall
be based on the ICP equivalent of the cleared UCAP capacity commitment.
•
Generation Capacity Resources shall submit a schedule of availability for the next seven
days and may submit non-binding offer prices for the days beyond the next Operating
Day.
•
The set of offer data last submitted for each Generation Capacity Resource shall remain
in effect for each day until specifically superseded by subsequent offers.
•
If a Generation Capacity Resource is not scheduled in the Day-ahead Market, it may
revise its offer and submit into the real-time market or it may self-schedule the resource.
•
Generation owners planning to run generation resources scheduled in the Day-ahead
Markets are required to call the PJM Control Center at least 20 minutes prior to bringing
the unit online. Generation owners of self-scheduled generation resources must also
provide at least 20 minutes notice.
•
Generation resources that are scheduled in the Day-ahead Market have a financial
obligation to sell their output in real-time. Provisions exist in the Tariff that permit make
whole payments to be made to those combustion turbines that are scheduled in the Dayahead Market and then not called on in real-time by PJM that are furthered defined in
PJM Manual M-28.
•
When a generation resource is not scheduled in the Day-Ahead Energy Market or the
Reserve Adequacy Commitment (RAC) by PJM, the Market Seller may update the costbased schedules availability hourly three hours prior to the operating hour. The costbased schedule made available must follow the Generation Owner’s fuel cost policy as
defined in PJM Manual 15: Cost Development Guidelines. A generation resource may
not change schedule availability once it has been committed by PJM for the hours in
which it is committed. In order to update cost-based schedule availability, the Generation
Owner must select the ‘Use Cost Schedule in Real Time’ flag in Markets Gateway (New
Schedule Availability Update Tab) between 1800-2100 the day prior to the operating
day. Selecting this flag will make the price-based schedule unavailable for the operating
day selected.
•
Generation Capacity Resources that have notification, startup, and minimum run times
that exceed 24 hours must submit binding offer prices for the next seven days.
•
Generation Capacity Resources that have notification plus startup times that exceed 24
hours and have been called on by PJM dispatch in advance of the close of the Dayahead Market bid period for the desired Operating Day must modify their notification and
startup time prior to the close of the market bid period for that day in order to create the
possibility for the unit to be committed in the Day-ahead Market.
•
Generation resources that are committed by PJM in advance of the Day-Ahead Energy
Market will be offer capped and committed on the available schedule at the time of the
commitment. The cost-based schedule made available must follow the Generation
Owner’s fuel cost policy as defined in PJM Manual 15: Cost Development Guidelines.
•
Each Generation Capacity Resource must make available at least one cost-based
schedule and if it falls within the types of generators in the PJM Unit Parameter matrix it
must also submit a market based parameter limited schedule.
•
Generation offers may consist of startup, no-load and incremental energy offer. A
Generation Capacity Resource offer may not exceed $1,000/MWh.
•
Emergency and Pre-Emergency Demand Resource offer price may not exceed the
following:
o
o
o
30 minute lead time resources: $1,000/MWh, plus the applicable Primary Reserve
Penalty Factor, minus $1.00
approved 60 minute lead time resources: $1,000/MWh, plus [the applicable Primary
Reserve Penalty Factor divided by 2]; and
approved 120 minute lead time resources: $1,100/MWh.
•
An economic demand resource offer may not exceed $1,000/MWh, plus the applicable
Primary Reserve Penalty Factor, minus $1.00
•
Energy resources may offer into the Day-ahead Market or Real-time Market.
•
If an Energy Resource does not submit offer data, then the offer is assumed to be a zero
MW quantity.
•
Intermittent Generation Resources, that are Capacity Resources and Capacity Storage
Resources shall meet the must offer requirement by either self-scheduling (Availability =
Must Run) or may allow the Day-ahead Market to schedule by offering the unit as a
dispatchable resource (Availability = Economic).
•
The hourly Day-ahead self-scheduled values for intermittent resources and Capacity
Storage Resources may vary hour to hour from the capacity obligation value,
•
Two price-based schedules may be offered into the Day-ahead Market. One schedule
must be a price based parameter limited schedule. The price-based parameter-limited
schedule may be unavailable, and if it is, the “use max gen” flag must be set to “yes”.
The price-based parameter limited schedule will be committed during Maximum
Generation Emergency if it is unavailable in the Day Ahead Market and the “use max
gen” flag is set to “yes”. The second price schedule is a price-based schedule that is not
parameter limited. One of these two price schedules must be available in the Day-Ahead
Market. In addition to the price-based schedule, one cost-based schedule shall be made
available for PJM's use in the event that the resource is used to control a transmission
constraint. The cost-based schedule shall be parameter-limited.
•
A generator offer that is accepted for the Day-ahead Market automatically carries over
into the balancing market.
•
Only one price-based offer may be submitted into the balancing market.
•
A generator offer for a generating unit with combined cycle capability shall make
available either the schedule for the CTs or the schedule for the combined cycle unit, not
both.
•
Only CTs may submit weather curves, which specify MW limits for CTs as a function of
temperature.
•
Forecast points shall consist of a daytime temperature and a nighttime temperature.
•
There are separate weather curves for economic MW and for emergency MW.
•
Each CT is assigned to a weather point, which is entered by the Operating Company. As
generating units change ownership it may be necessary to add weather points. The
default for the weather points is the PJM temperature forecast.
•
The priority of generator offer operating limits are as follows: (1) Unit Hourly MW limits
(Markets Gateway/Generator/Unit/Hourly Updates), (2) Daily Unit Schedule Limits
(Markets Gateway/Generator/ Schedules/Detail), (3) Unit limits (Markets
Gateway/Unit/Detail). Daily unit schedule MW limits can be overridden by unit hourly
MW limits. Weather curves for CTs apply to both unit limits and schedule limits.
•
Market Sellers may submit increment offers or decrement bids at any hub, transmission
zone, aggregate, single bus or eligible external interface point (posted on the PJM Web
site) for which an LMP is calculated. It is not required that physical generation or load
exists at the location that is specified in the increment offer or decrement bid.
•
A price-based unit has the option to choose cost-based start-up and no-load fees. A
price-based unit that chooses the cost based option may change the start-up and noload fees daily. A priced-based unit that chooses the price based option will continue to
be able to change the start-up and no-load fees twice a year.
•
The choice between using cost-based and price-based startup and no-load fees can be
made twice a year during the same open enrollment window (on or before 1200 hours
March 31 for the period April 1 through September 30 and on or before 1200 hours
September 30 for the period October 1 through March 31). Period 1 is defined as the
period of time beginning April 1 and ending September 30. Period 2 is defined as the
period of time beginning October 1 and ending March 31. If a priced based unit chooses
the cost-based start-up and no-load fees option, the decision cannot be changed until
the next open enrollment period takes place.
•
When a unit or part of a unit is designated as Maximum Emergency (ME), this means
that the referenced output levels may require extraordinary procedures and that the
designated MW is available to PJM only when PJM requests Maximum Emergency
Generation. Designation of a unit or a portion of a unit as ME should be based on the
real operating characteristics of the unit and not be used to withhold all or a portion of
the capacity of a unit from the Day-ahead Market.
Designation of all or part of a unit’s capacity as Maximum Emergency (ME) constitutes
withholding in the Day-ahead Market, if:
o
The capacity is not designated as ME in the bid for the Real-time Market, or;
o
There is no physical reason to designate the unit as ME.
The consequence of withholding a unit’s capacity under ME is:
o
The unit will be given an outage ticket which reflects a de-rating equal to the positive
difference in capacity designated Maximum Emergency in the bid for the Day-ahead
Market and capacity designated Maximum Emergency in the bid for the Real-time
Market.
•
A unit bid includes an Economic Maximum point, which is the highest output on its bid
curve that the unit is offering for economic dispatch. The Economic Max represents the
highest unrestricted level of MW that the operating company will operate the unit, under
its offer, for economic dispatch. The Economic Max point should be based on the actual
capability of the unit to operate on its bid curve and should not be used to withhold a
portion of the capacity of a unit from the Day-ahead Market.
Reduction of Economic Max MW constitutes withholding in the Day-ahead Energy
Market, if:
o
o
•
The Economic Max MW is higher in the bid for the Real-time Energy Market than in
the bid for the Day-ahead Market, or;
There is no physical reason to designate a lower Economic Max in the bid for the
Day-ahead Market bid than in the bid for the Real-time Market.
The consequence of withholding a unit’s capacity by reduction of Economic Max MW is:
o
The unit will be given an outage ticket which reflects a derating equal to the positive
difference in Economic Max output designated in the bid for the Real-time Market
and in the bid for the Day-ahead Market.
•
Generating units that are connected to the system at the same electrical location may be
aggregated and offered into the PJM market as a single unit.
•
The aggregated unit must be offered into the PJM markets as a single unit with only one
set of offer data, including startup, no load and incremental energy. This rule applies to
all energy and ancillary service markets into which the unit is offered.
•
Hourly integrated, revenue quality meter data must be submitted to eMeter on the basis
of the aggregated unit.
•
Real-time meter data is required for each physical unit in order to support the PJM state
estimator model and to allow energy settlement on an individual unit level.
•
Balancing Operating Reserve deviations for aggregated units will be calculated based on
the hourly aggregated unit output as defined in PJM Manual 28: Operating Agreement
Accounting, Section Operating Reserve Accounting.
•
Balancing Operating Reserve Generator deviations for units deemed to be “not following
dispatch” that occur at a single bus will be able to offset one another.
•
A “single bus” will be any unit located at the same site and that has the identical
electrical impacts on the transmission system. Units are deemed to have identical
electrical impacts on the transmission system if they meet the following criteria:
o
Units that have identical dfax to the system
o
Units that are on the same low side of the bus (i.e. connected at same voltage level)
•
In the case of units on busses with bus-tie breaker, if bus-tie breaker was open less than
5% of the hours in the previous 3 years, supplier netting of units will be allowed across
this bus-tie breaker.
•
PJM will maintain a list of units that are deemed to have identical electrical impacts on
the transmission system to be used for Balancing Operating Settlement. PJM will review
the list on an annual basis. Generators will be reviewed as needed during any new
generation activation or reconfiguration process as defined in Section 7 of PJM Manual
14d: Generator Operational Requirements.
•
Unit parameters do not have to be identical for the units’ deviation MW to offset one
another.
•
If multiple units are deemed “not following dispatch” at a single bus, the deviation MW
and direction of each unit at that bus will be summed to determine the deviation MW at
that bus.
•
Units at a “single bus” must be owned or marketed by single PJM Market Participant.
•
Unit modeling changes in the PJM Markets Gateway system (unit type, aggregation
level, for example), not including changes based on physical changes at the plant, can
be made at the beginning of each quarter.
•
CT’s are permitted to provide an Economic Minimum less than the physical economic
minimum value of the unit. Per the PJM Manual for Operating Agreement
Accounting, for settlement purposes, PJM determines the resource’s hourly UDS LMP
Desired MWh based on its dispatch rate, offer data, and minimum and maximum energy
limits for that hour. For steam units, the lesser of the day-ahead scheduled and real-time
economic minimum limits, and the greater of the day-ahead scheduled and real-time
economic maximum limits, are used. For CT’s, operating at PJM direction, the actual
real-time output is used as the UDS LMP Desired MWh value.
2.3.4 Minimum Generator Operating Parameters – Parameter Limited Schedules
Below is the list of business rules that require units to submit schedules that meet minimum
accepted parameters.
•
Pre-determined limits on cost based offers are always parameter limited Parameter
limitations for all Generation Resources will be established for market based offers. The
resources will be subject to these limits under the following circumstances:
o
If the three pivotal supplier test for the operating reserve market defined by
transmission constraint(s) is failed, the Parameter-Limited Schedule that is utilized
shall be the less limiting of the defined Parameter-Limited Schedules or the
submitted offer parameters.
•
IFor the 2014/15 through 2017/2018 Delivery Years, in the event that PJM: (i) declares a
Maximum Generation Emergency; (ii) issues a “Maximum Generation Emergency
Alert”); or (iii) schedules units based on the anticipation of a Maximum Generation
Emergency or a Maximum Generation Emergency Alert for all or any part of such
Operating Day, generation resources will be committed on their Parameter-Limited
Schedule.
•
For Capacity Performance Resources, the previous bullet applies plus Hot or Cold
Weather Alert declarations.
•
For Base Capacity Resources, the previous emergency conditions apply only during hot
weather operations.
•
For the 2014/2015 through 2017/2018 Delivery Years, PJM will define a list of minimum
acceptable operating parameters for Generation Capacity Resources other than
Capacity Performance Resources, based on an analysis of historically submitted offers,
for each unit class for the following parameters 1:
o
Turn Down Ratio
o
Minimum Down Time
o
Minimum Run Time
o
Maximum Daily Starts
o
Maximum Weekly Starts
•
Turn Down Ratio is defined as the ratio of economic maximum MW to economic
minimum MW.
•
For the 2016/2017 and subsequent Delivery Years for Capacity Performance
Resources, and for the 2018/2019 and 2019/2020 Delivery Years for Base Capacity
Resources, the list of minimum acceptable parameters will consist of the following
parameters:
•
o
Turn Down Ratio
o
Minimum Down Time
o
Minimum Run Time
o
Maximum Daily Starts
o
Maximum Weekly Starts
o
Maximum Run Time
o
Start Up Time
o
Notification Time
Market Sellers with price based generation resources will be required to submit three
schedules, per Section 2.3.3 of this Manual, as follows: (1) a cost based parameter
limited schedule, (2) a price based schedule, and (3) a price based parameter limited
schedule. Only the cost based parameter limited schedule and the price based
parameter limited schedule must follow the predefined parameters in the Parameter
Limited Schedule Matrix or approved parameter exceptions.
For the Delivery Years up to an including the 2017/2018 Delivery Year, the default values set
forth in the Parameter Limited Schedule Matrix shall apply to Generation Capacity Resources,
other than Capacity Performance Resources, unless the resource is operating pursuant to an
exception from the default values due to physical operational limitations that prevent the
resource from meeting the minimum parameters. The Parameter Limited Schedule Matrix is
found in Section 6.6(c) of Attachment K-Appendix of the Tariff and the parallel provision of
Schedule 1 of the Operating Agreement found at:
http://www.pjm.com/documents/agreements.aspx
For the 2018/2019 and 2019/2020 Delivery Years for Base Capacity Resources, and the
2016/2017 Delivery Year and subsequent Delivery Years for Capacity Performance Resources,
and when the resource is offer capped to maintain system reliability as a result of limits on
transmission capability, PJM will determine for each such resource its unit-specific parameter
limitations based on the operating design characteristics and other constraints of that resource.
The resource’s unit-specific parameter values will apply for that resource unless it is operating
pursuant to an exception from those values under section 6.6(h) of Attachment K-Appendix of
the Tariff and the parallel provision of Schedule 1 of the Operating Agreement due to
operational limitations that prevent it from meeting the minimum resource parameters.
Market Sellers that do not believe their individual resources can meet the unit-specific
parameter values determined by PJM due to actual operating constraints, can request that PJM
establish adjusted unit-specific parameters for those resources. The Market Seller may
request adjusted unit-specific parameter limitations by providing all the necessary data,
information and documentation to PJM in order to justify and support the adjusted unit-specific
limitations to PJM at unitspecificpls@pjm.com by no later than February 28 immediately
preceding the first Delivery Year for which the adjusted unit-specific parameters are requested
to commence, and provide technical information about the operational limits that support the
requested parameters. PJM shall notify the Market Seller if its request was approved or denied
by no later than April 15. The effective date of the requested parameter shall be no earlier than
June 1 of the first applicable Delivery Year. PJM will consult with the Market Monitoring Unit
and consider any input received in its determination of a resource’s unit-specific parameter
limited schedule values.
The operational limitations that support adjusted unit-specific parameters shall be (a) physical
operational limitation based on operating design characteristics of the resource, or (b) other
actual physical constraints that are not based on the characteristics of the resource, including
contractual limitations. For a contractual limit to be considered a physical constraint which the
Market Seller should be permitted to reflect in its unit-specific parameter limits for the resource,
and not an economic constraint which should not be taken into consideration in the
determination of the unit-specific parameters for that resource, the contractual limit must be
based on a natural gas pipeline transportation contract that is for the best available service
offered by the pipeline and available to the Market Seller rather than a lower cost option that
provides less flexible service. For example, if a pipeline offers hourly nominations and/or no
notice service, the resource’s operational parameters will be based on those more flexible
services that are available even if a less flexible service is procured.
•
There are three different types of exceptions to the Parameter Limited Schedule Matrix
default and unit-specific values:
•
Temporary Exception – is a one-time exception lasting for 30 days or less during the
twelve month period from June 1 to May 31.
•
Period Exception – is an exception lasting for at least 31 days but no more than one
year during the twelve month period from June 1 to May 31.
•
Persistent Exception – is an exception lasting for at least one year.
•
The MMU shall review the Parameter Limited Schedule Matrix , included in Section
6.6(c) of Schedule 1 of the Operating Agreement, annually, and, in the event it
determines that revision is appropriate, shall provide a revised matrix to PJM by no later
than December 31 Pursuant to section II.B of Attachment M – Appendix of the Tariff,
period and persistent exception requests must be sent to
Parameters.Exceptions@pjm.com by no later than February 28 immediately preceding
the twelve month period from June 1 to May 31 during which the exception is requested
to commence. All market sellers that wish to submit a Parameter-Limited Schedule for
units with physical operational limitations that prevent the units from meeting the
minimum parameters may submit a request for a new exception via Markets Gateway for
evaluation. Each market seller seeking an exception must supply the required historical
unit operating data in support of the period or persistent exception and if the exception
requested is based on new physical operational limits for the resource for which
historical operating data is unavailable, the generation resource may also submit
technical information about the physical operational limits for period exceptions of the
resource to support the requested parameters.
•
Physical operational limitations for period or persistent exceptions may include but are
not limited to, metallurgical restrictions due to age and long term degradation; physical
design modifications; operating permit limitations; operating limits imposed by federal,
state or local regulatory requirements or insurance carrier requirements; consent
decrees; manufacturer technical bulletins; or environmental permit limitations under nonemergency conditions. Each market seller requesting a period or persistent exception
based on new physical operational limitations for a unit may submit the technical
information, required due to the unavailability of historical operating data, supporting the
requested parameters, which must be based on the definition of physical operational
limitations for period or persistent exceptions of the unit. Each temporary, period or
persistent exception request will indicate the expected duration of the requested
exception including the date on which the requested exception period will end. If physical
conditions at the unit change such that the exception is no longer required, the market
seller is obligated to inform PJM and the MMU and the exception will be reviewed to
determine if the exception continues to be appropriate.
•
If a request for a period or persistent exception is received by February 28, the MMU will
review the exception and provide the Market Seller and PJM with a determination in
writing whether the request raises market power concerns by April 1, and PJM shall
provide its determination whether the request is approved or denied by no later than
April 15. Should PJM require additional technical expertise in order to evaluate the
exception request, PJM will engage the services of a consultant with the required
expertise.A generation resource shall notify the MMU and PJM when the temporary
exception commences and terminates and provide to the MMU and PJM within three
days following such commencement documentation explaining in detail the reasons
for the temporary exception, that includes:
o
Unit Name
o
Parameter Limit Requested
o
Reason for Temporary Exception Request
o
eDart ticket
o
o
Justification for Temporary Exception Request, including required unit operating data
in support of the exception
Date on which the exception period will end.
•
If PJM does not receive a complete exception request, and the unit did not clear in the
DAM, the unit schedule will returned to its previous parameter limits.
•
Physical operational limitations for temporary exceptions may include, but are not limited
to, short term equipment failures, short term fuel quality problems such as excessive
moisture in coal fired units, or environmental permit limitations under non-emergency
conditions.
•
Market Sellers may use exceptions to reflect physical operational limitations (e.g.,
operational flow orders) on natural gas pipelines and local natural gas distribution
companies (LDC). These exceptions will be reviewed by PJM and the MMU and
approved by PJM, in accordance with the applicable provisions of the Tariff and
Operating Agreement.
•
In addition, physical operational limitations for temporary exceptions may include any
physical operational limitation for period exceptions that arises during the annual period
from June 1 to May 31 to which period exceptions apply.
•
For steam units, regardless of fuel type, the average historical values for any of the
parameters as offered by the owners for the calendar year 2006 may be used in place of
the values in the parameter-limited schedule matrix. For steam units, regardless of fuel
type, the historical averages are calculated from the market based offers for market
based units and from cost-based offers for units that made only cost-based offers.
•
For combined cycle units:
o
o
o
If the 2006 average historical market-based offer parameters are within the limits in
the parameter matrix, the unit will be limited to that 2006 historical average. If not
then ii) applies;
If the unit was offered with market-based offer parameters for 10% or more of the
days (36 days minimum) at a level at or more flexible than parameters in matrix, the
unit will be limited at that level. If not the iii) applies
If the 2006 average historical market based offer parameters exceed the limits in the
matrix (less flexible than the parameters in the matrix) then the unit will be limited to
the level at which the market-based parameter was bid to the most flexible level for
10% or more of the days (36 days minimum) at that level.
•
If physical conditions at the unit change such that the exception is no longer required,
the market seller is obligated to inform PJM and the MMU and the exception will be
terminated.
•
Market sellers may indicate to PJM and the MMU those units with the ability to operate
on multiple fuels. Multiple-fuel units may submit a parameter-limited schedule associated
with each fuel type. All Parameter-Limited Schedules must be submitted via Markets
Gateway seven days prior to the beginning of each period beginning June 1. The market
seller will be required to indicate to PJM which of the parameter-limited schedules are
available each day by using the Markets Gateway use max gen flag. Any exceptions
required for any of the parameter-limited schedules submitted for multiple-fuel units will
be required to be submitted and approved via the exception process.
•
Nuclear Units are excluded from eligibility for Operating Reserve payments except in
cases where PJM requests that nuclear units reduces output at PJM’s direction or
where a physical problem at a nuclear unit requires a risk premium and that risk
premium is submitted to and accepted by the MMU. Other specific circumstances will be
evaluated on a case-by-case basis by PJM and the MMU.
•
Market Sellers shall notify in writing the MMU and the PJM of a material change to the
facts relied upon by the MMU and/or the PJM to support a temporary, period or
persistent exception.
The following business rules apply to Transmission Customers:
•
Transmission customers may submit external bilateral transaction schedules and may
indicate willingness to pay congestion charges into either the Day-ahead Market or
balancing market. In the Day-ahead Market, a transaction shall indicate willingness to
pay congestion charges by submitting the transaction as an ‘up to’ congestion bid.
•
‘Up to’ congestion bids shall be no greater than $50/MWh, and no less than -$50/MWh.
Any ‘up to’ congestion transaction that bids higher than $50/MWh or less than -$50/MWh
will be rejected.
•
PJM will maintain an up-to date list of source/sink combinations that will be available for
‘Up to ‘congestion bidding on the PJM OASIS.
•
Internal bilateral transactions may be designated as day-ahead or balancing market in
PJM InSchedule.
•
Up-to congestion bids, increment offers, and decrement bids shall be supported in the
Day-ahead Market only.
•
‘Up to” congestion bids are cleared based on the total LMP price difference between the
source and the sink.
•
PJM may require that a market participant shall not submit in excess of 3000 ‘up to’
congestion transactions in the Day-ahead Energy Market, when PJM determines that
such limit is required to avoid or mitigate significant system performance problems
related to the volume of transactions.